BluSmart Mobility, India’s first all-electric ride-hailing service, is grappling with significant financial challenges.
The company, which operates in major cities like Delhi NCR, Bengaluru, and Mumbai, has delayed March salary payments and witnessed a series of high-profile leadership exits.
These developments have raised concerns about BluSmart’s financial stability and its ability to sustain operations in a competitive market.
BluSmart Salary Delays and Employee Impact
BluSmart informed its employees that March salaries would be disbursed in phases, starting with those in the lowest pay grades.
The company expects full payment to be completed by the end of April.
This delay has caused unrest among employees, many of whom rely on timely payments to meet their financial obligations.
The salary delays are indicative of BluSmart’s cash flow issues, which have been exacerbated by recent setbacks.
In February, the company defaulted on bonds worth ₹30 crore, further highlighting its financial strain.
Leadership Exits at BluSmart and Organizational Restructuring
BluSmart has experienced a wave of leadership changes, with several senior executives stepping down from their roles.
Notable departures include CEO Anirudh Arun, Chief Business Officer Tushar Garg, Chief Technology Officer Rishabh Sood, and Vice President Priya Chakravarthy.
The company has appointed Nandan Sharma, previously Vice President of Business and Operations, as the new CEO.
These leadership exits come at a critical time for BluSmart, as the company undergoes major operational restructuring.
The changes are aimed at improving financial stability and streamlining operations, but they have also raised questions about the company’s ability to retain top talent and maintain organizational continuity.
Setbacks in Expansion Plans, Financial Performance and Debt Burden
BluSmart’s financial challenges have forced the company to scale back its global ambitions.
In March, BluSmart shut down its Dubai services and canceled plans to expand into Saudi Arabia.
These decisions reflect a strategic pullback as the company focuses on stabilizing its core operations in India.
Additionally, BluSmart faced a major setback when Refex Industries terminated a deal involving the acquisition of approximately 3,000 electric vehicles from Gensol Engineering leased to BluSmart.
This development has disrupted BluSmart’s plans to scale up its fleet and expand its services.
BluSmart generates a monthly revenue of ₹70 crore, equating to an annual run rate of ₹840 crore.
The company carries significant debt despite generating this revenue.
As of March 2025, BluSmart has an outstanding net debt of ₹280 crore out of a total debt of ₹980 crore.
These financial constraints have limited the company’s ability to invest in growth and innovation.
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